Osborne poised to slash corporation tax to 20%

GEORGE OSBORNE is to signal more cuts in corporation tax in the budget,
setting out a plan to reduce it to 20%, significantly lower than other large
western economies.

Treasury sources say the chancellor is determined to give priority to business
in his speech on March 21, despite political pressure to use it to announce
populist tax changes.

Osborne has already cut corporation tax. It was 28% when he took power, is now
25%, and will shrink to 23% over this parliament. He is expected to set a
new target of 20% for later years.

America has a basic rate of 35%, and France 33.3%. In Germany it is 15% but
additional social taxes mean an effective rate of more than 30%. Ireland,
which lures multinationals with low taxes, takes 12.5%.

Other business-friendly measures from Osborne will include details of
infrastructure and credit-easing plans outlined in the autumn statement.
Treasury